The Council of Ministers of 15 October 2024 approved the Budget Bill 2025, a measure that introduces significant measures on pensions, work, family and tax incentives for citizens and businesses. The Maneuver, with effects that will reach about 30 billion in 2025, 35 billion in 2026 and more than 40 billion in 2027, must be finalized by the Parliament by the end of the year. In this guide we see in detail the main changes and anticipations of the 2025 Budget Law
.
Main changes of the 2025 Budget Law
The Government has introduced numerous measures aimed at supporting families, workers and retirees, in line with the new European and global economic context. Among the main interventions are the reduction of the tax burden and the support for medium-low incomes. In addition, funds are provided for the renewal of public employment contracts, the refinancing of the national health fund and measures to support the birth rate and large families
.
1. New Born Card
One of the most anticipated measures of the Maneuver is the “New Born Card”, which will recognize a contribution of 1,000 euros to parents with an ISEE of less than 40,000 euros. This financial aid aims to support the initial expenses related to the birth of a child, partly recalling the ‘Baby Bonus’ active in the
past.
2. New hires in the Public Administration
In 2025, new hires will be expected in the Public Administration, in particular in the health sector and in local authorities. The Government intends to strengthen its staff with new public tenders, supported by specific investments for defense and central administrations. The competitions will follow the simplified rules introduced by the recent PA reform
.
3. Funds for recruitment in healthcare
Thanks to a contribution on the extra profits of banks and insurance companies, the Budget Law will allocate about 3.5 billion euros for the recruitment of new healthcare professionals. These funds will also be used to finance the renewal of contracts in the sector, with wage increases in line with nominal GDP growth
.
4. Confirmed Dedicated to You Card
In 2025, the “Card Dedicated to You” will be confirmed, an economic aid for families with an income of less than 15,000 euros. This card has a budget of 500 million euros and is used for the purchase of basic necessities, including fuel.
5. News on pensions
As far as pensions are concerned, the 2025 Maneuver confirms the increases in minimum pensions and the extension of measures such as the Social APE until 2028, the 103 Share and the Women’s Option. There are no plans to expand Quota 41 for everyone, but the introduction of incentives is being considered for those who decide to remain at work beyond retirement age, similar to the ‘Maroni
bonus’.
6. Structural tax wedge
The cut of the tax wedge was made structural starting in 2025, with the decontribution in the payroll remaining fixed at 6% or 7% for low-income workers. This measure will avoid the need for annual renewals and provides for a decalage deduction for incomes between
35,000 and 40,000 euros.
7. Recruitment in the school sector
2025 will also be a year of stabilizations and new entries in the school sector. 70,000 new hires are expected among ATA teachers and staff, with the aim of filling vacancies through competitions already started or being published. The plan is part of the measures of the PNRR and the reform of school recruitment
.
8. Enhanced kindergarten bonus
The bonus for families with children who attend kindergartens will also be increased in 2025, with a maximum contribution of 3,000 euros per year, based on the ISEE. In addition, the sums received through the Single Universal Check will be excluded from the ISEE, further reducing the tax burden
for families.
9. Strengthening parental leave
In 2025, employees will be able to benefit from 9 months of parental leave paid by the INPS, including 3 months at 80% and 6 months at 30%. The Government has also announced further enhancements to this measure, which will be defined in the coming months
.
10. Lower taxes for families with children
Among the proposals of the 2025 Budget Law is the introduction of a more favorable tax system for families with dependent children, aimed at encouraging the birth rate. The mechanism will be based on the ‘family quotient’, increasing tax deductions based on the number of members of the
family unit.
11. News on the Single and Universal Check
The Maneuver provides for the exclusion of the Single and Universal Check from the ISEE calculation, facilitating access to other benefits. Further details on the changes to the Single Check will be defined during the parliamentary process of the law
.
12. Renewal of civil servants’ contracts
Public employment contracts will also be renewed in 2025, with an allocation of 5 billion euros to adjust salaries to inflation and guarantee wage increases in the three-year period 2025-2027.
13. Confirmation of personal income tax rates
The Budget Law confirms the three personal income tax rates introduced with the 2024 tax reform: 23% for incomes of up to 28,000 euros, 35% for incomes of up to 50,000 euros and 43% for higher incomes.
14. Bonuses confirmed in 2025
Among the confirmed bonuses are the psychologist bonus, the bill bonus and the summer bonus. However, Prime Minister Giorgia Meloni has clarified that 2025 will not be the year of bonuses, with fewer resources dedicated to these measures than
in 2024.
15. Incentives for hiring
The Government has confirmed various incentives for recruitment, including the bonus for young people under 35 and the bonus for women, as well as new contribution reductions for hiring workers in difficulty.
16. Reduced taxation on production premiums
Even in 2025, production premiums of up to 3,000 euros will benefit from a tax reduced to 5%. On the other hand, the hypothesis of tax relief for thirteenth and overtime, put forward in 2024, has not been implemented
.
17. Incentives and funds for businesses
The Maneuver refinances development contracts, Innovation Agreements and funds for SMEs, with the aim of supporting productive activities and encouraging the country’s economic growth.
18. Confirmations on fringe benefits
Fringe benefits will also be confirmed in 2025, with an increase for workers who transfer their residence by more than 100 kilometers. We also consider raising the threshold to 1,000 euros for all employees and to 2,000 euros for those with children.
19. Confirmation of the Inclusion Check
The 2025 Budget Law confirms the Inclusion Allowance and Training and Work Support, with new resources to facilitate the social and labor inclusion of the unemployed and people in difficulty.
The 2025 Budget Law introduces a package of measures designed to support families, workers and the country’s economy. The parliamentary process will define in detail further changes and updates to the provisions approved by the Government, with the aim of ensuring sustainable growth in the medium to
long term.